This is a Pediatric Oncology Group (POG) Phase III acute myelogeneous leukemia (AML) study. The study will investigate whether the use of cyclosporine and high dose Ara-C in induction improves outcome in childhood AML, and whether reversal of the multidrug resistance (MDR) phenotype using cyclosporine during remission improves survival. Specific Aims: 1) Determine the effect of high dose vs standard dose Ara-C induction on Cancer remission and event free survival (EFS) in childhood AML 2) Compare the EFS in childhood AML after 3 cycles of consolidation with or without the MDR modulator, Cyclosporine A. 3) Compare the EFS between patients genetically randomized between allogeneic BMT and chemotherapy. 4) Evaluate the impact on EFS of various clinical and laboratory factors such as cytogenetics and MDR expression.